Bureau of Economic Analysis

Survey of Current Business

Table of Contents
August 2001

S pecial
in this issue

7 Annual Revision of the National Income
and Product Accounts: Annual Estimates, 1998-2000, and Quarterly Estimates, 1998:I-2001:I
(PDF)

Overall, the picture of the U.S. economy
that is presented by the revised estimates is similar to that shown by the previously
published estimates. Both sets of estimates show strong growth, fueled by consumer
spending and business investment, and low inflation. For the period covered by the
revisions, the average annual growth rate of real GDP was revised down from 4.5 percent to
4.2 percent, but the revised rate is still considerably above the average growth rate of
3.5 percent over the current expansion (1991:I-2001:I). The revised estimates reflect the
incorporation of newly available and revised regular source data and the introduction of
changes in methodology, including the use of better source data to prepare the estimates
of fixed investment in prepackaged and custom software and in communication equipment.

In 1992-99, the average annual growth rates
in real gross state product (GSP) ranged from 7.3 percent in Arizona to - 0.3 percent in
Hawaii. In 1999, California accounted for the largest share (13.2 percent) of the Nation's
current-dollar GSP, followed by New York (8.1 percent) and Texas (7.4 percent). The new
and revised GSP estimates incorporate the results of the July 2000 revision of the NIPA's,
the October 2000 revision of State personal income, and the December 2000 release of GDP
by industry.

Regular features

The pace of U.S. production slowed further
to an increase of 0.7 percent in the second quarter of 2001. In particular, nonresidential
fixed investment and exports of goods decreased much more than in the first quarter, and
consumer spending increased less. Inflation moderated.

The current-dollar gross product of U.S.
affiliates of foreign companies increased 8 percent in 1999, the same increase as in 1998.
The U.S.-affiliate share of GDP in U.S. private industries edged up to a record 6.4
percent. By country of ownership, the United Kingdom remained the largest investing
country, and by industry, manufacturing continued to account for more than half of the
gross product of all affiliates.

173 Personal Income by State: First
Quarter 2001 and Revised Quarterly Estimates for 2000 (PDF)

From the first quarter of 2000 to the first
quarter of 2001, Colorado, Minnesota, and Virginia were the States with the fastest growth
in nonfarm income, reflecting strength in high-tech industries. Michigan, Indiana, and
Ohio had the slowest growth in nonfarm income, reflecting declines in motor vehicle
manufacturing.